Tim Draper
Tim Draper|Jul 10, 2025 16:01
Startups achieve success slowly, building their company brick by brick. Founders can develop marketing leverage by building a viral or network effects strategy or… by partnering with larger companies who have great distribution themselves and trying to reach through to the end customer with premium offerings. Companies that build their distribution by coming in at a lower than market price should follow up with higher margin products or they will find themselves in a competition that we call “a race to the bottom.” It is mission critical for startups to work to build distribution and market share, but they need to then provide something that their customers can’t live without, and charge enough for it to support the continued distribution strategy. Startup founders: Look at every customer as a long-term partner, because you want your business to be a long-term survivor. Look at every supplier as a long-term partner and make sure they are healthy. Look at every employee as a long-term partner. You want them to grow with you and with the business.
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